Create Restaurants Holdings (TSE:3387) Beneish M-Score : -2.95 (As of Mar. 16, 2025)

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What is Create Restaurants Holdings Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.95 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Create Restaurants Holdings's Beneish M-Score or its related term are showing as below:

TSE:3387' s Beneish M-Score Range Over the Past 10 Years
Min: -3.85 Med: -2.6 Max: -0.6
Current: -2.95

During the past 13 years, the highest Beneish M-Score of Create Restaurants Holdings was -0.60. The lowest was -3.85. And the median was -2.60.

Create Restaurants Holdings Beneish M-Score Historical Data

The historical data trend for Create Restaurants Holdings's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Create Restaurants Holdings Beneish M-Score Chart

Create Restaurants Holdings Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

Beneish M-Score

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-2.88

-2.60

-3.21

-2.95

-2.99

Create Restaurants Holdings Quarterly Data
	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24	Nov24
Beneish M-Score	Get a 7-Day Free Trial															-2.77	-2.99	-2.99	-2.93	-2.95

Competitive Comparison of Create Restaurants Holdings's Beneish M-Score

For the Restaurants subindustry, Create Restaurants Holdings's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Create Restaurants Holdings's Beneish M-Score Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Create Restaurants Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Create Restaurants Holdings's Beneish M-Score falls into.

Create Restaurants Holdings Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Create Restaurants Holdings for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.1319

0.528 * 1.0003

0.404 * 1.0495

0.892 * 1.0704

0.115 * 1.0005

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9877

4.679 * -0.146956

0.327 * 0.9708

-2.95

This Year (Nov24) TTM:

Last Year (Nov23) TTM:

Total Receivables was 円7,568 Mil.
Revenue was 38935 + 38180 + 38286 + 37311 = 円152,712 Mil.
Gross Profit was 27663 + 27340 + 27383 + 26600 = 円108,986 Mil.
Total Current Assets was 円31,978 Mil.
Total Assets was 円137,653 Mil.
Property, Plant and Equipment(Net PPE) was 円58,000 Mil.
Depreciation, Depletion and Amortization(DDA) was 円15,463 Mil.
Selling, General, & Admin. Expense(SGA) was 円98,888 Mil.
Total Current Liabilities was 円39,827 Mil.
Long-Term Debt & Capital Lease Obligation was 円49,095 Mil.
Net Income was 1542 + 1340 + 1852 + 1140 = 円5,874 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = 円0 Mil.
Cash Flow from Operations was 6042 + 7586 + 5405 + 7070 = 円26,103 Mil.

Total Receivables was 円6,246 Mil.
Revenue was 35465 + 36375 + 36607 + 34218 = 円142,665 Mil.
Gross Profit was 25235 + 25892 + 26096 + 24627 = 円101,850 Mil.
Total Current Assets was 円30,282 Mil.
Total Assets was 円131,371 Mil.
Property, Plant and Equipment(Net PPE) was 円57,736 Mil.
Depreciation, Depletion and Amortization(DDA) was 円15,403 Mil.
Selling, General, & Admin. Expense(SGA) was 円93,537 Mil.
Total Current Liabilities was 円36,991 Mil.
Long-Term Debt & Capital Lease Obligation was 円50,429 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(7568 / 152712)	/	(6246 / 142665)
	=	0.049557	/	0.043781
	=	1.1319

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(101850 / 142665)	/	(108986 / 152712)
	=	0.71391	/	0.71367
	=	1.0003

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (31978 + 58000) / 137653)	/	(1 - (30282 + 57736) / 131371)
	=	0.346342	/	0.330004
	=	1.0495

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	152712	/	142665
	=	1.0704

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(15403 / (15403 + 57736))	/	(15463 / (15463 + 58000))
	=	0.210599	/	0.210487
	=	1.0005

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(98888 / 152712)	/	(93537 / 142665)
	=	0.647546	/	0.655641
	=	0.9877

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((49095 + 39827) / 137653)	/	((50429 + 36991) / 131371)
	=	0.645987	/	0.665444
	=	0.9708

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(5874 - 0	-	26103)	/	137653
	=	-0.146956

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Create Restaurants Holdings has a M-score of -2.95 suggests that the company is unlikely to be a manipulator.

Create Restaurants Holdings Beneish M-Score Related Terms

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Create Restaurants Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Create Restaurants Holdings Inc (TSE:3387) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

5-10-18 Higashigotanda, Shinagawa-ku, Tokyo, JPN, 141-0022

Website

http://www.createrestaurants.com

Create Restaurants Holdings Inc develops, manages, and franchises a variety of food-service brands and formats that fall into categories ranging from casual food courts and ramen to Japanese-style bars and dinnertime restaurants. The company has nearly 800 restaurants operating under nearly 200 different brands that typically offer Japanese, Western, or Chinese cuisines. The vast majority of the company's revenue is generated in Japan. Some of the company's notable brands are Isomaru-Suisan, Kissho, Tanto Tanto, Tsukemen Tetsu, and Hina Sushi.

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